What gives you a bad credit score?

So, what gives you a bad credit score? Well, when it comes to credit scores, everyone has to start somewhere. Although there are lots of different factors that can lower your credit score, there are a few main causes that can lead to bad credit:

  • Missed or late payments on your credit file
  • Little or no credit history
  • CCJs or defaults
  • Bankruptcy

While those are the big hitters, there are a few other factors that can have an impact:

  • Not being registered on the electoral roll
  • Having a high credit utilisation ratio
  • A hard credit search being recorded on your credit file
  • A declined credit application
  • Having a high amount of debt

The good news is, anybody can improve their credit score over time. If you need a few tips on how you can give yours a boost, read our guide to improving your credit score.

Warning: Late repayment can cause you serious money problems. For help go to moneyhelper.org.uk

36.8% APR Representative (fixed)

Representative example: 36.8% APR Representative based on a loan of £12,500 repayable over 48 months at an interest rate of 36.8% pa (fixed). Monthly repayment of £500.83. Total amount repayable is £24,039.67.